AsianFin — Arabica coffee futures surged to their highest level in 27 years, driven by concerns over global coffee bean supply as key coffee-growing nations, including Brazil and Vietnam, face significant weather challenges.

On November 25, Arabica coffee futures on the New York market rose 1.54%, reaching $3.0995 per pound, and briefly spiked to $3.1280, marking the highest price since 1997. Meanwhile, Robusta coffee futures, fueled by drought concerns, increased by 2.63%, reaching $5116, with an earlier peak at $5327, also hitting a new high since the 1970s.

Analysts attribute the price surge to the impacts of climate change on major coffee producers, with persistent droughts threatening the supply of coffee beans and driving up global coffee prices. Additionally, port blockages and unrest in the Red Sea region have further disrupted global supply chains, contributing to the escalating prices.